KKR has agreed to pump an additional $40m of equity into United Envirotech (UEL), the Chinese water treatment company the buyout firm first invested in 18 months ago.
The offering price is S$0.50 per share, which represents an 8.5 per cent premium to S$0.461 per share, being the volume weighted average price for the last 30 trading days.
The $40m investment will give KKR shares amounting to 20.6 percent of the shares already in issue, according to Thomson Reuters data.
UEL provides engineering services using membrane technology to municipal and industrial wastewater treatment projects, and also operates a portfolio of wastewater treatment plants across China.
The proceeds will be used to fund the acquisition of water treatment plants, upgrading of existing plants and Company’s working capital, KKR said in the statement.
“Working with KKR, we are able to leverage their global resources, operational capabilities with KKR Capstone and their China team’s local experience and track record of success,” UEL chairman and CEO Dr Lin Yucheng said in the statement.
“With the additional capital, UEL is well positioned to continue our growth and scale new heights in China’s water treatment space.”
New York-listed KKR made a $113.8m investment in UEL in October 2011 through a convertible bonds issue to support the company’s business expansion.
UEL has been listed on the main board of the Singapore Stock Exchange since April 2004.
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